The S&P home price index suggests that prices increased by 1.3 percent from April to May. 91 of the top 100 homebuying zip codes are in California. The vacancy rate for rental housing has remained flat at 10.6 percent for the past year. MPF Research reports the number of occupied apartments grew by 215,000 in the 64 largest U.S. markets in the first half of 2010.

In The News:

Associated Press – “Home prices increase 1.3 pct. in May from April” (7-27-10)

“The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday posted a 1.3 percent increase in May from April. Nineteen of 20 cities showed price gains month over month. Minneapolis and Atlanta led the way with 2.8 percent and 2 percent increases, respectively. And San Diego posted its 13th straight monthly gain.”

Inman - “California ‘hot’ among homebuyers” (7-27-10)

“Of the report’s 100 ‘hottest’ ZIP codes nationwide, 91 were in California. This means that, on average, homes in these ZIP codes sold for the most above listing price, while homes in the ‘coldest’ ZIP codes sold for the most under listing price.”

Housing Wire – “Housing Vacancy, Homeownership Rates Remain Level in Q210″ (7-27-10)

“The 2.5% vacancy rate of owner-occupant housing units was only 10 basis points (bps) below the previous quarter and remained level with the year-ago quarter. The rental housing market’s vacancy rate of 10.6% in Q210 was level with the previous quarter and year-ago quarter. Additionally, the homeownership rate slipped to 66.9%, nearly level with 67.1% in the previous quarter”

Housing Wire – “HUD Fines CitiMortgage $700,000 for Failure to Report Delinquencies” (7-27-10)

“The US Department of Housing and Urban Development (HUD) reached a $700,000 settlement with CitiMortgage, Inc. (CMI) after the company failed to report delinquent loans by the specified monthly deadline. The action was reported in a recently released notice of actions being taken against Federal Housing Administration (FHA) lenders that failed to comply with government standards for lending practices.”

Housing Wire – “FHFA Sees 30-Year Mortage Rate Dip to 5% June” (7-27-10)

“The average contract mortgage rate on conventional 30-year fixed-rate mortgages slipped to 5% in June, 12 basis points (bps) down from a month earlier, according to the Federal Housing Finance Agency (FHFA). The rate had held at 5.12% for the past two months. The contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) fell 9 bps to 4.9%”

Bloomberg - “Apartment Rentals Surge in U.S. on Home Foreclosures, Job Gains” (7-27-10)

“The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half, according to MPF Research. That’s almost double the units added in all of 2009 and the most since the firm began tracking the data in 1992. The vacancy rate declined to 6.6 percent last month from 8.2 percent in December.”

Bloomberg - “U.S. Cities, Counties Poised to Cut 500,000 Jobs, Report Finds” (7-27-10)

“U.S. local governments may cut almost 500,000 jobs through next year to cope with sliding property taxes, a decline in state and federal aid and added need for social services, according to a report released today. The report, a result of a survey by the National League of Cities, the U.S. Conference of Mayors and the National Association of Counties, showed local governments are moving to cut the equivalent of 8.6 percent of their workforces from 2009 to 2011. That suggests 481,000 employees will lose their jobs, according to the report, which said the tally may yet rise.”

Orange County Register – “Hear why next housing peak ‘2016 or beyond’” (7-27-10)

“Economist Mark Schniepp of the California Forecast tells ocregister.com in a podcast interview that local housing will endure a recovery that’s ‘painstakingly frustrating’ in its modesty with improving but not impressive sales volumes and prices. But it will take a big turnabout in the employment picture before hosuing’s rebound become significant but it will still be ‘until 2016-2017 or beyond’ before the old peaks are surpassed.”

Housing Wire – “Big 4 Banks Add $9.5bn in Nonperforming, Foreclosed Properties in One Year” (7-27-10)

“Each of the ‘big-four’ banks, Bank of America (BAC: 14.19 +0.28%), Wells Fargo (WFC: 28.39 +1.72%), JPMorgan Chase (JPM: 40.69 +0.89%) and Citigroup (C: 4.16 +0.24%) released quarterly earnings reports for Q210 in July, reporting a total increase of $9.5bn in nonperforming or foreclosed properties from the same quarter last year.”

Looking Back:

One year ago, pools increased a homes value by up to 11 percent in Southern California. Fiserv predicted that California would be the hottest home market in 2010. New home purchases climbed 11 percent in June 2009.